Monday August 16, 3:24 pm Eastern Time
Company Press Release
SOURCE: Concentrex Incorporated
Concentrex Completes ULTRADATA Acquisition
PORTLAND, Ore., Aug. 16 /PRNewswire/ -- Concentrex Incorporated (Nasdaq: CCTX - news), formerly known as CFI ProServices, Inc., announced today it has completed its acquisition of ULTRADATA Corp. (Nasdaq: ULTD - news), a leading provider of information management solutions to financial institutions nationwide. The completion of the acquisition positions Concentrex as the leading single source provider of integrated, PC-based software to financial institutions including back office accounting, branch automation, loan origination, new account opening, call centers, cross-selling and electronic banking.
The combined entity will have annualized 1999 sales estimated to be more than $150 million, and will be the first software provider to have more than one million individual banking consumers using its technology to perform on-line banking functions through their financial institutions. More than 5,000 financial institutions of all sizes throughout the U.S. use Concentrex's software.
Matt Chapman, chairman and CEO of Concentrex, said, ``The completion of this acquisition provides Concentrex an unparalleled ability to meet the complex needs of financial institutions nationwide. Financial institutions will be able to rely on a single source provider of integrated financial services technology for everything from electronic banking to front-end software applications to host processor services. With more than half of all the commercial banks in the country using one or more Concentrex products, we have significantly expanded our cross-selling opportunities.'
ULTRADATA shareholders approved the transaction on July 23, 1999 at a purchase price of $7.50 a share, for a total of $63.5 million. Concentrex borrowed $72 million from a consortium of lenders, and completed the transaction Friday, Aug. 13. Details of that transaction will be included in the upcoming 10-Q and 8-K filings with the Securities and Exchange Commission.
The ULTRADATA acquisition comes after Concentrex's May 1999 purchase of MECA Software LLC, a pioneering developer of personal financial management software and Internet solutions for financial service providers
Mr. Chapman continued, ``Concentrex is the first company to attain critical mass in the home banking arena -- from PC banking and bill payment to personal financial management and e-commerce, a business segment that will grow dramatically in the next decade. Additionally, the acquisition of both ULTRADATA and MECA, which feature very high recurring revenue components, addresses an important strategic goal of the company -- developing a more predictable revenue stream.'
``We're at work now melding our operations and integrating our products,' said Chapman. ``Using the strengths of MECA and ULTRADATA, Concentrex will bring the power of real-time host processing, the dependability of automated compliance and operations solutions and the sophistication of e-commerce to institutions of all sizes.'
Concentrex, based in Portland, Oregon, has offices in 11 additional cities across the country. Concentrex offers back office core processing software that provides financial institutions of all types with true information management capabilities, together with software solutions for branch automation, loan origination, new account opening, cross selling, servicing, and call centers. The Company is also a leader in all aspects of home banking, taking the lead by combining, in one company, information management technology with all aspects of branch and online financial services. Its World Wide Web address is www.concentrex.com.
This release contains forward-looking information and estimates of performance that involve risk and uncertainty. Concentrex's product offerings are subject to change, cancellation and performance. For additional information, please refer to the Company's Securities and Exchange Commission reports filed under the Securities Exchange Act.
SOURCE: Concentrex Incorporated
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